2017 Q1 Form 10-Q Financial Statement

#000151029517000052 Filed on May 01, 2017

View on sec.gov

Income Statement

Concept 2017 Q1 2016 Q1
Revenue $16.29B $12.76B
YoY Change 27.7% -25.8%
Cost Of Revenue $15.04B $11.57B
YoY Change 29.99% -22.83%
Gross Profit $1.344B $1.232B
YoY Change 9.09% -44.95%
Gross Profit Margin 8.25% 9.66%
Selling, General & Admin $390.0M $378.0M
YoY Change 3.17% 5.59%
% of Gross Profit 29.02% 30.68%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $536.0M $490.0M
YoY Change 9.39% 34.99%
% of Gross Profit 39.88% 39.77%
Operating Expenses $390.0M $378.0M
YoY Change 3.17% 5.59%
Operating Profit $291.0M $75.00M
YoY Change 288.0% -94.9%
Interest Expense -$167.0M -$197.0M
YoY Change -15.23% 657.69%
% of Operating Profit -57.39% -262.67%
Other Income/Expense, Net -$7.000M -$6.000M
YoY Change 16.67% -40.0%
Pretax Income $142.0M -$67.00M
YoY Change -311.94% -104.82%
Income Tax $41.00M $11.00M
% Of Pretax Income 28.87%
Net Earnings $30.00M $1.000M
YoY Change 2900.0% -99.89%
Net Earnings / Revenue 0.18% 0.01%
Basic Earnings Per Share $0.06 $0.00
Diluted Earnings Per Share $0.06 $0.00
COMMON SHARES
Basic Shares Outstanding 525.0M shares 529.0M shares
Diluted Shares Outstanding 530.0M shares 531.0M shares

Balance Sheet

Concept 2017 Q1 2016 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.167B $308.0M
YoY Change 603.57% -85.18%
Cash & Equivalents $2.167B $308.0M
Short-Term Investments
Other Short-Term Assets $199.0M $204.0M
YoY Change -2.45% 17.24%
Inventory $5.392B $4.983B
Prepaid Expenses
Receivables $3.284B $2.602B
Other Receivables $0.00 $0.00
Total Short-Term Assets $11.04B $8.097B
YoY Change 36.37% -26.74%
LONG-TERM ASSETS
Property, Plant & Equipment $25.67B $25.32B
YoY Change 1.38% 55.9%
Goodwill $3.586B $3.649B
YoY Change -1.73% 133.01%
Intangibles
YoY Change
Long-Term Investments $4.704B $3.807B
YoY Change 23.56% 322.06%
Other Assets $820.0M $886.0M
YoY Change -7.45% 110.95%
Total Long-Term Assets $34.78B $33.66B
YoY Change 3.32% 75.97%
TOTAL ASSETS
Total Short-Term Assets $11.04B $8.097B
Total Long-Term Assets $34.78B $33.66B
Total Assets $45.82B $41.76B
YoY Change 9.73% 38.35%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $5.343B $4.083B
YoY Change 30.86% -24.21%
Accrued Expenses $1.010B $761.0M
YoY Change 32.72% -18.08%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $28.00M $215.0M
YoY Change -86.98% -72.29%
Total Short-Term Liabilities $6.866B $5.595B
YoY Change 22.72% -32.96%
LONG-TERM LIABILITIES
Long-Term Debt $12.57B $11.35B
YoY Change 10.74% 90.23%
Other Long-Term Liabilities $1.700B $1.962B
YoY Change -13.35% 4.92%
Total Long-Term Liabilities $14.27B $13.31B
YoY Change 7.19% 69.87%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.866B $5.595B
Total Long-Term Liabilities $14.27B $13.31B
Total Liabilities $25.02B $22.26B
YoY Change 12.4% 22.32%
SHAREHOLDERS EQUITY
Retained Earnings $10.05B $9.584B
YoY Change 4.82% 15.9%
Common Stock $11.17B $10.99B
YoY Change 1.61% 11.07%
Preferred Stock
YoY Change
Treasury Stock (at cost) $7.905B $7.353B
YoY Change 7.51% 12.91%
Treasury Stock Shares 212.0M shares 200.0M shares
Shareholders Equity $13.07B $12.90B
YoY Change
Total Liabilities & Shareholders Equity $45.82B $41.76B
YoY Change 9.73% 38.35%

Cashflow Statement

Concept 2017 Q1 2016 Q1
OPERATING ACTIVITIES
Net Income $30.00M $1.000M
YoY Change 2900.0% -99.89%
Depreciation, Depletion And Amortization $536.0M $490.0M
YoY Change 9.39% 34.99%
Cash From Operating Activities $1.108B $330.0M
YoY Change 235.76% -72.27%
INVESTING ACTIVITIES
Capital Expenditures $610.0M $745.0M
YoY Change -18.12% 91.52%
Acquisitions $220.0M $0.00
YoY Change
Other Investing Activities -$21.00M -$7.000M
YoY Change 200.0% -77.42%
Cash From Investing Activities -$1.353B -$727.0M
YoY Change 86.11% 87.37%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $410.0M $74.00M
YoY Change 454.05% -60.64%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $1.523B -$422.0M
YoY Change -460.9% 93.58%
NET CHANGE
Cash From Operating Activities $1.108B $330.0M
Cash From Investing Activities -$1.353B -$727.0M
Cash From Financing Activities $1.523B -$422.0M
Net Change In Cash $1.278B -$819.0M
YoY Change -256.04% -240.24%
FREE CASH FLOW
Cash From Operating Activities $1.108B $330.0M
Capital Expenditures $610.0M $745.0M
Free Cash Flow $498.0M -$415.0M
YoY Change -220.0% -151.81%

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CY2017Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
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CY2017Q1 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Settlements
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CY2016Q1 us-gaap Payments To Acquire Property Plant And Equipment
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CY2017Q1 us-gaap Payments To Minority Shareholders
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CY2017Q1 us-gaap Preferred Stock Shares Outstanding
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CY2017Q1 us-gaap Preferred Stock Value
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CY2017Q1 us-gaap Proceeds From Collection Of Longterm Loans To Related Parties
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CY2016Q1 us-gaap Proceeds From Issuance Of Commercial Paper
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CY2017Q1 us-gaap Proceeds From Issuance Of Commercial Paper
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CY2016Q1 us-gaap Proceeds From Issuance Of Common Limited Partners Units
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CY2017Q1 us-gaap Proceeds From Issuance Of Common Limited Partners Units
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CY2016Q1 us-gaap Proceeds From Issuance Of Common Stock
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CY2017Q1 us-gaap Proceeds From Issuance Of Common Stock
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CY2016Q1 us-gaap Proceeds From Issuance Of Long Term Debt And Capital Securities Net
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CY2017Q1 us-gaap Proceeds From Issuance Of Long Term Debt And Capital Securities Net
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CY2016Q1 us-gaap Profit Loss
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11000000 USD
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CY2017Q1 us-gaap Related Party Transaction Purchases From Related Party
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CY2016Q1 us-gaap Repayments Of Commercial Paper
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76000000 USD
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300000000 USD
CY2016Q1 us-gaap Repayments Of Long Term Debt And Capital Securities
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207000000 USD
CY2016Q4 us-gaap Retail Related Inventory Merchandise
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CY2016Q4 us-gaap Retained Earnings Accumulated Deficit
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CY2017Q1 us-gaap Retained Earnings Accumulated Deficit
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CY2017Q1 us-gaap Sales And Excise Tax Payable Current
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CY2017Q1 us-gaap Stock Repurchase Program Remaining Authorized Repurchase Amount1
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2140000000 USD
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CY2016Q1 us-gaap Treasury Stock Acquired Average Cost Per Share
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43.96
CY2017Q1 us-gaap Treasury Stock Acquired Average Cost Per Share
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50.15
CY2016Q4 us-gaap Treasury Stock Shares
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CY2017Q1 us-gaap Treasury Stock Shares
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212000000 shares
CY2016Q1 us-gaap Treasury Stock Shares Acquired
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CY2017Q1 us-gaap Treasury Stock Shares Acquired
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CY2016Q1 us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
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CY2016Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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CY2017Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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CY2017Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2016Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2017Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2017Q1 us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Not Yet Adopted</font></div><div style="line-height:120%;padding-top:4px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In March 2017, the FASB issued an update requiring that the service cost component of pension and postretirement benefit costs be presented in the same line item as other current employee compensation costs and other components of those benefit costs be presented separately from the service cost component and outside a subtotal of income from operations, if presented.&#160; The update also requires that only the service cost component of pension and postretirement benefit cost is eligible for capitalization.&#160;The update is effective for annual periods beginning after December 15, 2017 and interim periods within that annual period.&#160;Application is retrospective for the presentation of the components of these benefit costs and prospective for the capitalization of only service costs. Early adoption is permitted. We do not expect application of this accounting standard update to have a material impact on our consolidated financial statements.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2017, the FASB issued an accounting standard update addressing the derecognition of nonfinancial assets.&#160;The guidance defines in substance nonfinancial assets, and states that the derecognition of business activities should be evaluated under the consolidation guidance, with limited exceptions related to conveyances of oil and gas mineral rights or contracts with customers.&#160;The standard eliminates the previous exclusion for businesses that are in-substance real estate, and eliminates some differences based on whether a transferred set is that of assets or a business and whether the transfer is to a joint venture.&#160;The standard must be implemented in conjunction with the implementation date of the revenue recognition accounting standard update, which we will implement January 1, 2018. We plan to adopt the new standard using the modified retrospective method and are in the process of determining the impact of the accounting standard update on the consolidated financial statements together with our evaluation of the new revenue recognition standard, as described further below.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2017, the FASB issued an accounting standard update which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the new guidance, the recognition of an impairment charge is calculated based on the amount by which the carrying amount exceeds the reporting unit&#8217;s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The guidance should be applied on a prospective basis, and is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2017, the FASB issued an accounting standard update to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard is intended to narrow the definition of a business by specifying the minimum inputs and processes and by narrowing the definition of outputs. The change is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The guidance will be applied prospectively and early adoption is permitted for certain transactions. </font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In November 2016, the FASB issued an accounting standard update requiring that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The change is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. Retrospective application is required. The application of this accounting standard update will not have a material impact on our statements of cash flows.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In October 2016, the FASB issued an accounting standard update that requires recognition of the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs. The change is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The amendments in this accounting standard update should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We do not expect application of this accounting standard update to have a material impact on our consolidated financial statements.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In August 2016, the FASB issued an accounting standard update related to the classification of certain cash flows. The accounting standard update provides specific guidance on eight cash flow classification issues, including debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination and distributions received from equity method investees, to reduce diversity in practice. The change is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. We do not expect application of this accounting standard update to have a material impact on our statements of cash flows.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In June 2016, the FASB issued an accounting standard update related to the accounting for credit losses on certain financial instruments.&#160;The guidance requires that for most financial assets, losses be based on an expected loss approach which includes estimates of losses over the life of exposure that considers historical, current and forecasted information.&#160;Expanded disclosures related to the methods used to estimate the losses as well as a specific disaggregation of balances for financial assets are also required.&#160;The change is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. We do not expect application of this accounting standard update to have a material impact on our consolidated financial statements. </font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2016, the FASB issued an accounting standard update requiring lessees to record virtually all leases on their balance sheets. The accounting standard update also requires expanded disclosures to help financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. For lessors, this amended guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The change will be effective on a modified retrospective basis for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. We are currently evaluating the impact of this standard on our financial statements and disclosures, internal controls and accounting policies. This evaluation process includes reviewing all forms of leases, performing a completeness assessment over the lease population and analyzing the practical expedients in order to determine the best path of implementation. We expect to recognize an asset and obligation related to leases previously accounted for as operating leases.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2016, the FASB issued an accounting standard update requiring unconsolidated equity investments, not accounted for under the equity method, to be measured at fair value with changes in fair value recognized in net income. The accounting standard update also requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes and the separate presentation of financial assets and liabilities by measurement category and form on the balance sheet and accompanying notes. The accounting standard update eliminates the requirement to disclose the methods and assumptions used in estimating the fair value of financial instruments measured at amortized cost. Lastly, the accounting standard update requires separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when electing to measure the liability at fair value in accordance with the fair value option for financial instruments. The changes are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. Early adoption is permitted only for the guidance regarding presentation of a liability&#8217;s credit risk. We do not expect application of this accounting standard update to have a material impact on our consolidated financial statements.</font></div><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2014, the FASB issued an accounting standard update for revenue recognition for contracts with customers. The guidance in the accounting standard update states that revenue is recognized when a customer obtains control of a good or service. Recognition of the revenue will involve a multiple step approach including identifying the contract, identifying the separate performance obligations, determining the transaction price, allocating the price to the performance obligations and then recognizing the revenue as the obligations are satisfied. Additional disclosures will be required to provide adequate information to understand the nature, amount, timing and uncertainty of reported revenues and revenues expected to be recognized. The change will be effective on a retrospective or modified retrospective basis for fiscal years beginning after December 15, 2017, and interim periods within those years, with early adoption permitted, no earlier than January 1, 2017. We are currently evaluating the impact of this standard on our financial statements and disclosures, internal controls and accounting policies. This evaluation process is primarily focused on reviewing service contracts and transaction types across our Midstream segment. We are also evaluating the election for net reporting included in the accounting standard update for consumer excise taxes. We will adopt the revenue recognition standard during the first quarter of 2018. We plan to adopt the new standard using the modified retrospective method which will result in a cumulative effect adjustment as of the date of adoption. By selecting this adoption method, we will disclose the amount by which each financial statement line item is affected by the standard in the current reporting period as compared with the guidance that was in effect before adoption.</font></div></div>
CY2017Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">These interim consolidated financial statements are unaudited; however, in the opinion of our management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal, recurring nature unless otherwise disclosed. These interim consolidated financial statements, including the notes, have been prepared in accordance with the rules of the SEC applicable to interim period financial statements and do not include all of the information and disclosures required by U.S. GAAP for complete financial statements.</font></div></div>

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